Drewniak Corporation has provided the following data from its activity-based costing system: The company makes 430 units of product O37W a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $35.72 per unit and its direct labor cost is $29.46 per unit. According to the activity-based costing system, the average cost of product O37W is closest to:
A)$94.11 per unit
B)$89.72 per unit
C)$65.18 per unit
D)$92.49 per unit

Question

Drewniak Corporation has provided the following data from its activity-based costing system:  The company makes 430 units of product O37W a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $35.72 per unit and its direct labor cost is $29.46 per unit. According to the activity-based costing system, the average cost of product O37W is closest to:
A)$94.11 per unit 
B)$89.72 per unit 
C)$65.18 per unit 
D)$92.49 per unit

Quizplus · Accepted Answer

The Answer of Drewniak Corporation has provided the following data from its activity-based costing system:  The company makes 430 units of product O37W a year, requiring a total of 690 machine-hours, 40 orders, and 10 inspection-hours per year. The product's direct materials cost is $35.72 per unit and its direct labor cost is $29.46 per unit. According to the activity-based costing system, the average cost of product O37W is closest to:
A)$94.11 per unit 
B)$89.72 per unit 
C)$65.18 per unit 
D)$92.49 per unit

Drewniak Corporation Has Provided the Following Data from Its Activity-Based